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Employee Loyalty Is the New NPS

Net Promoter Score or NPS was developed as a means to measure customer loyalty more quickly and accurately. In a Harvard Business Review article the creator of the system, Frederick F. Reichheld, explained that simply measuring customer retention rates isn’t enough. Attracting a high number of customers is great in the short run, but loyalty is what will help your company grow exponentially in the long run. Loyal customers spread the word of your business, lower new customer acquisition costs and chose to use your services, even when confronted with a cheaper option. NPS is based on customer surveys that ask one simple question: “Would you recommend our company to a friend or colleague?”

What is only recently being realized is that HR departments can also use NPS to gauge employee loyalty. Employee Net Promoter score or eNPS, is calculated in the same way, except you’re asking the question, “How likely is it that you would recommend this company as a place to work?”

Loyalty is not simply how long an employee has been with your company, but how committed they are to your company’s success. Based on responses from a sample of HR professionals and employees, Workforce determined that “loyalty includes being willing to stay through good and bad times, internalizing company goals as personal goals, and giving extra time, energy and commitment to the company when necessary.”

Article by,

Steffan Maier

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